Iranian President: Fighting Sanctions Requires Shift From Reliance On Oil Income

From Star Tribune

By Ali Akbar Dareini

President Mahmoud Ahmadinejad said Wednesday Iran must move away from dependence on oil revenue to overcome Western sanctions that have slowed the economy and disrupted foreign trade.

Many Iranian officials have described the Islamic Republic’s reliance on crude oil exports as a weakness, but Ahmadinejad’s call before parliament highlights the political will to try to broaden Iran’s economy. It also represents the first major acknowledgment by Ahmadinejad that the economic squeeze from sanctions demands “structural changes” in Iran’s industries and exports.

Tehran had long counted on crude oil sales as the backbone of the nation’s economy, accounting for about 80 percent of foreign currency income. But Western sanctions over Iran’s nuclear program have targeted oil exports and shut Iran out of the international banking system, making it hard for its remaining customers in Asia and elsewhere to pay.

Speaking to lawmakers, Ahmadinejad said “enemies” are using the weak points in Iran’s economy to pressure the country. Iranian authorities have accused the West of waging an “economic war.”

Iran’s Supreme Leader Ayatollah Ali Khamenei insisted sanctions will not succeed.

“The arrogance front (U.S. and its allies) have employed all their might to force the Iranian nation through sanctions and pressures to surrender. But this nation will tolerate the hardships because it has recognized enemy plans, tactics and strategy,” Khamenei said Wednesday, according to Iran’s state TV.

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